4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: 147.4110
In the last days of the year, the most famous and popular precious metal is trading upward. There are several explanations for this. First, after several Fed pigeon plans to complete policy of tightening monetary policy and weak GDP and inflation forecasts for 2019, the US dollar itself is getting cheaper. Secondly, there is still strong demand for gold as a safe haven due to too many uncertainties in the United States and Europe, as well as in the UK, which have been described in articles on the euro and the pound. Thus, if the new year 2019 begins with another scandal or perturbation in the White House, which may be associated with Jerome Powell and his possible dismissal by Trump, then the demand for the US dollar will only fall. Also, the longer the issue of Brexit is delayed, the longer will be the demand for currencies and safe-haven assets. Most likely, any negative completion of the Brexit process will also cause additional demand for gold, as traders will continue to get rid of the pound sterling, and the US dollar may not be the most popular currency to invest in 2019. Especially if Trump again takes up the question of the excessive cost of the US currency.
Nearest support levels:
S1 - 1265.63
S2 - 1257.81
S3 - 1250.00
Nearest resistance levels:
R1 - 1273.44
R2 - 1281.25
R3 - 1289.06
Trading recommendations:
The GOLD tool is still in an upward movement. Thus, tomorrow, when markets open up, long positions with targets at 1273.44 and 1281.25 are recommended, which can be held until the Heikin Ashi indicator is down.
Short positions can be considered no earlier than price fixing below the moving average, which would mean a change in the trend of the instrument to a downward one. The targets, in this case, will be the levels of 1242.19 and 1234.38.
In addition to the technical picture, you should also consider the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of the unidirectional movement.
The junior linear channel is the purple lines of the unidirectional movement.
CCI is the blue line in the indicator regression window.
The moving average (20; smoothed) is the blue line on the price chart.
Murray levels - multi-colored horizontal stripes.
Heikin Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com